Toronto Pre-Construction Condo Lawyer
Pre-Construction Condo Lawyer Toronto: Protecting Your Investment from Deposit to Closing
Buying a pre-construction condo in the GTA offers the opportunity to purchase at today’s prices with a closing date years in the future, but it also comes with unique risks that are very different from buying a resale property. The builder’s Agreement of Purchase and Sale is heavily weighted in favour of the developer, and your only window to negotiate changes is the 10-day cooling-off period provided by Ontario’s Condominium Act.
Issues that commonly affect pre-construction buyers include levy increases that can add tens of thousands to the final price, construction delays that push back your move-in date by months or even years, changes to the unit’s final size or layout from the original floor plan, restrictions on assignment sales if you need to sell before closing, and the interim closing period where you pay occupancy fees without yet owning the unit.
At Sarkaria Sethi LLP, we help pre-construction buyers across Toronto, Vaughan, Mississauga, and the GTA review builder agreements during the cooling-off period, negotiate caps on hidden levies, understand the interim closing process, and navigate the assignment process when needed.
Our Pre-Construction Services
- Builder agreement review during the 10-day cooling-off period
- Negotiation of levy caps to limit your financial exposure
- Review of deposit structure and Tarion warranty coverage
- Advice on assignment rights, restrictions, and tax implications
- Interim closing coordination and occupancy fee review
- Final closing documentation and title transfer
Frequently Asked Questions
What is the 10-day cooling-off period?
Ontario’s Condominium Act gives buyers 10 calendar days after signing an Agreement of Purchase and Sale to cancel the agreement without penalty by providing written notice to the builder. This is your only opportunity to have a lawyer review the agreement and negotiate any changes or protections before you are locked in.
Can I assign my pre-construction contract?
It depends on your builder’s agreement. Many builders allow assignments but charge a fee, typically 2% to 5% of the purchase price. Some newer agreements restrict or prohibit assignments entirely due to changes in the Ontario market. We review your specific agreement to determine your options.
What are occupancy fees?
Occupancy fees are monthly payments made during the period between when you can move into the unit and when the condominium is legally registered. They cover your share of property taxes, common element fees, and interest on the unpaid balance of the purchase price. These fees can be substantial and are not the same as a mortgage payment.
What happens if the builder delays closing?
Builder delays are common in pre-construction projects. Your Agreement of Purchase and Sale should specify your rights if the closing is delayed, including any rights to cancel the agreement after a specified period. We review these provisions with you before you sign.
Get a Free Legal Consultation
Contact Sarkaria Sethi LLP at 905-440-1220 or reach out online. We serve clients in English, Hindi, and Punjabi.
Legal Information, Not Legal Advice. This page provides general information about real estate legal services in Ontario. Every real estate transaction is unique, and you should consult with a qualified real estate lawyer about your specific situation before taking any action.